The former Presidential candidate of the Labour Party (LP), Peter Obi, has condemned the recent increase in fuel price, calling on the Federal Government to reverse the sudden petrol price hike.

The former Anambra State Governor stated this in a post on his X handle on Saturday morning.

 

Recall that the Nigerian National Petroleum Company Limited (NNPCL) announced a 14.8% hike in the price of petrol raising it to ₦1,030 per litre from ₦897.

This marks the second petrol price increase within the past month, following a previous rise in September when the price surged from ₦615 to ₦897 per litre.

Reacting, Peter Obi described the latest increase as unfortunate and insensitive.

He called on President Bola Tinubu, who doubles as the Minister of Petroleum, to provide full explanation, offer alternative options, and most importantly, reverse the sudden price hike.

Peter Obi wrote: “As Nigerians continue to groan under extremely difficult economic conditions, largely caused by the Federal Government’s wrong policy choices, the NNPCL has once again raised the price of fuel (PMS) without providing any explanation.

“This is both unfortunate and insensitive, considering the wide-ranging negative consequences for our economic survival and well-being.

“This is neither how an economy’s resources should be managed nor how a nation should be governed. In this new measure, there is neither sound economics nor necessary compassion.

“We are told that the NNPCL is now a limited liability company, regulated by agencies such as the NUPRC and NMDPRA, yet there seems to be growing confusion about the roles and responsibilities of the NNPCL and these regulating bodies.

“Interestingly, both the NNPCL and the regulatory agencies are supposed to be under the supervision of the Federal Ministry of Petroleum Resources, with the President of the Federal Republic of Nigeria serving as the substantive Minister. Who, in this arrangement, is regulating who?

“With the unprecedented but avoidable hardship that Nigerians are enduring, the responsibility for providing a full explanation, offering alternative options, and most importantly, reversing the sudden price hike falls squarely on the Honorable Minister of Petroleum Resources/President of the Federal Republic of Nigeria.

“We hope and pray that he acts in the best interest of the majority of Nigerians, who are living under unnecessarily precarious conditions, and that he does so before his return from his working vacation.

“To casually inflict such a draconian measure on the populace from the comfort of an annual vacation amounts to taking the people’s welfare lightly and for granted.

“A New and more compassionate Nigeria is indeed Possible!”

President Bola Tinubu congratulates businesswoman Hajia Muinat Bola Shagaya as she celebrates her 65th birthday.

The President joins family, friends and business associates in celebrating the founder and CEO of Bolmus Group International, whose business and philanthropic endeavours have touched the lives of many Nigerians.

The President commends Hajia Shagaya’s contribution to the nation's economic growth, particularly through her diverse business investments in industries such as oil, real estate, banking, and communications.

President Tinubu extends his heartfelt wishes for the continued health and happiness of the trailblazing entrepreneur.

Bayo Onanuga
Special Adviser to the President
(Information & Strategy)

President Bola Tinubu condoles with the Group Chief Executive Officer (GCEO) of the Nigeria National Petroleum Company Limited (NNPCL), Mr Kolo Mele Kyari over the death of his daughter.

Kyari’s daughter, Fatima died Friday at the age of 25 after protracted illness.

The President sympathizes with Kyari and the rest of the family on the irreparable and painful loss.

President Tinubu prays for the repose of the soul of Fatima and urges the Kyari family to stay strong at these trying times.

Bayo Onanuga
Special Adviser to the President
(Information & Strategy)

The Federal Government has officially granted petroleum marketers the authority to lift petrol directly from the Dangote refinery, circumventing the Nigerian National Petroleum Company Limited (NNPC).

This significant development marks a pivotal shift in the nation’s petroleum distribution landscape, effectively ending NNPC’s monopoly as the sole off-taker of Dangote’s refined fuel.

 

In a statement released on Friday, the Minister of Finance and Chairman of the Naira-crude sale implementation committee, Wale Edun, provided insights into the decision, highlighting its implications for the industry.

The announcement comes in the wake of increasing speculation regarding NNPC’s changing role in the procurement of petroleum products.

During a review meeting held on October 10, the Implementation Committee, chaired by Edun, assessed the progress of the initiative aimed at facilitating crude oil and refined product sales in naira.

As a result of this new policy, petroleum marketers are expected to engage directly with the Dangote refinery for their fuel needs, a move that could lead to more competitive pricing and improved supply chain dynamics.

He said, “The committee is pleased to report a successful transition of operations in line with the directive issued by the Federal Executive Council. This directive has established a robust framework for local production and distribution of crude oil and refined products for local consumption in naira.

“With this mechanism now in full operation, along with the commencement of local production, we are well-positioned to transition to a fully deregulated market for all petroleum products.

“Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency.”

Edun noted that the government remained confident that, in the long term, these measures will create better market conditions for the benefit of all Nigerians.

The National Working Committee (NWC) of the PDP has extensively considered the series of complaints raised against the Acting National Chairman, Amb. Illiya Damagum and National Secretary, Sen. Samuel Anyanwu particularly with regard to the letter addressed by them to the Court of Appeal in Appeal No:CA/PH/307/2024 against the Party’s position in the case involving the 27 former members of the Rivers State House of Assembly who vacated their seats upon decamping from the PDP to the All Progressives Congress (APC).

The NWC condemned this anti-party activity of the Acting National Chairman and the National Secretary which is in gross violation of the provisions of the PDP Constitution (as amended in 2017) and their Oath of Office.

Consequently, the NWC, pursuant to Sections 57, 58 and 59 of the PDP Constitution, has suspended Amb. Illiya Damagum and Sen. Samuel Anyanwu as Acting National Chairman and National Secretary of the Party respectively and referred them to the National Disciplinary Committee for further action.

In the meantime, the two officials are suspended from all meetings, activities and programs of the NWC pending the conclusion of investigation by the National Disciplinary Committee.

Signed:

Hon. Debo Ologunagba
National Publicity Secretary

Senior Advocate of Nigeria (SAN), Femi Falana, has said Nigerian National Petroleum Company Limited (NNPCL)’s action to fix imported and locally refined fuel prices is illegal and void.

Falana, in a statement on Thursday, referred to remarks made on September 5, 2024, by the Executive Vice President of Downstream NNPC Ltd, Adedapo Segun, who explained that under Section 205 of the Petroleum Industry Act (PIA), NNPC Limited is established to operate in a deregulated market where free market forces determine petroleum prices.

Segun had said, “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.”

However, Falana objected to the comment, stating that NNPCL has no legal authority to set the petrol price in Nigeria.

The human rights lawyer pointed out that despite Segun’s claim, NNPCL set the fuel price refined by Dangote Refinery and Petrochemical Company Limited last month without allowing market forces to dictate the pricing.

Falana noted that on Wednesday, October 9, 2024, NNPCL again bypassed the mechanism of market forces in determining the cost by announcing new pump prices for fuel refined by the Dangote Refinery.

According to Falana, NNPCL actions violate Section 205 of the Petroleum Industry Act, which mandates that market dynamics determine the prices of petroleum products.

NNPCL deals with companies, not associations — Expert

By Obas Esiedesa

 

THE Independent Petroleum Marketers Association of Nigeria, IPMAN, has observed that the full deregulation of petrol pricing, along with the withdrawal of NNPC Limited as the sole off-taker of petrol from the Dangote Refinery, means that marketers are now free to source products from various suppliers, including through imports.

 

This is even as an expert said the NNPCL does not deal with associations, including IPMAN but with companies that applied and paid for their petroleum products.

The IPMAN position came a day after the NNPC increased the pump price of petrol by 15 percent to N998 per liter in Lagos and N1,030 per litre in Abuja.

Speaking to Vanguard, the Public Relations Officer, IPMAN, Chief Chinedu Ukadike, said marketers would source their products from wherever they feel is cheaper and make them (IPMAN) competitive.

Ukadike pointed out that the current business environment in terms of petrol pricing is shrouded in secrecy with marketers not adequately informed about decisions before they were taken.

“The happening has been shrouded in secrecy but with time everything will come out because full deregulation has come into play. Marketers can now import and so let’s see what they will do. Then we will know whether we will go with Dangote or elsewhere where the price is better”, he stated.

Earlier in the day, IPMAN President, Alhaji Abubakar Maigandi Shettima, demanded a refund of N15 billion from NNPC Limited for petrol orders placed by independent marketers but were not supplied.

Shettima who made the demand in an interview with Channels TV stated that if NNPC’s current pricing is higher than that of Dangote Refinery, the national oil company must refund the payments made by independent marketers.

 

He criticized the NNPC for requesting additional payments from marketers despite not supplying the product for which they had already paid.

However, an expert that preferred to be anonymous faulted the oil marketers, stating that the NNPCL does not do business with oil marketers, including IPMAN.

 

He said: “NNPCL does not have a business relationship with IPMAN because the association did not fill a form and paid to lift petrol from the company. Rather, the NNPCL is dealing with many companies.

MTN Nigeria Communications Plc and Airtel Nigeria collectively generated about N3.67tn from their data and voice services in the first half of 2024, an analysis of their financial results showed.

MTN, the country’s biggest telecom operator with almost 80 million subscribers, reported a combined revenue of N1.27tn for the first six months of 2024, driven by a significant uptick in data services.

The revenue includes N726.6bn from data services, reflecting a 55 per cent increase from N469.7bn in the same period in 2023. Voice services also grew, with revenue reaching N541.3bn, up from N474.1bn year-on-year.

The operator, which has been serving Nigeria’s vast population for two decades, attributed this growth to enhancements in service quality and the robust demand for data services. Price optimization strategies implemented in Q4 2023 further fueled this growth.

 
 

Airtel, with over 60 million subscribers, recorded $229m in revenue for the quarter ended June 30, 2024. This revenue comprises $112m from voice services and $117m from data services.

Although voice revenue experienced a significant decline of 55.8 per cent from $254m in the same quarter last year, it increased by 21.6 per cent in constant currency terms, its financial report showed.

Data revenue also declined by 48.6 per cent from $228m in the previous year, but constant currency figures showed a robust growth of 41.3 per cent, indicating rising demand for internet services.

 

For the full year ending March 31, 2024, analysis of the report showed that Airtel achieved $711m in voice revenue and $654m in data revenue, bringing its total revenue across both periods to $1.594bn.

When converting the total revenue generated by Airtel Nigeria into naira, using the exchange rate of N1500/$1, the operator generated N2.4tn in six months.

The combined revenue figures for both companies indicated that Airtel generated N2.4tn, while MTN raked in N1.27tn, resulting in a total revenue of approximately N3.67tn from data and voice services over the six months.

 

The duo are adeptly navigating a dynamic telecommunications landscape, capitalizing on the growing demand for digital services amid Nigeria’s expanding digital economy.

However, the companies face significant challenges, primarily due to the weakening naira against the dollar, which has severely impacted operational costs.

Both MTN Nigeria and Airtel Africa, listed on the Nigerian Stock Exchange, budget a significant portion of their revenues to diesel consumption.

Industry operators estimate that over 50 million liters of diesel are consumed by telecom operators each month to fuel their infrastructure.

 

In response to these rising costs, telecom companies are now shifting their focus towards renewable energy sources, such as solar, wind, and lithium batteries.

The Director of Corporate Communications and CSR at Airtel Nigeria, Femi Adeniran, disclosed last month in Lagos that the company spends approximately N28bn monthly on diesel.

A senior telecom executive, who requested anonymity, revealed that MTN, with around 80 million subscribers, incurs over N30bn in monthly diesel expenses to power its approximately 25,000 base stations.

Collectively, MTN and Airtel spent approximately N570bn in the first eight months (January to August) of 2024 due to rising fuel costs, with diesel prices averaging N1,426.09 per liter, The PUNCH reported last month.

For the first half of 2024, MTN reported a loss of $519.1bn after tax, while Airtel posted an $89m loss for the fiscal year ending March 2024. However, Airtel managed to achieve a $31m profit in Q2, despite being impacted by $80m in derivative and foreign exchange losses.

The Senate on Thursday asked the Federal Government to deny allocations to local governments where the chairmen were selected by the state governor.

This resolution was adopted after the Senate Minority leader, Sen. Abba Moro, raised concern over what he describes as sham local government elections conducted on Saturday, 5th October 2024, and the abuse of the Constitution.

Moro alleged that in most places, elections took place in the private homes of the chieftains of the ruling party, making the entire process a mere coronation of candidates of the ruling party and not a proper election contemplated under the 1999 Constitution of the Federal Republic of Nigeria (as amended).

 

Across party lines, the co-sponsors unanimously concurred that there was no election in Benue.

In the ensuing debate, other lawmakers further expressed worry over the lack of transparency and fairness in local government elections, citing examples in Rivers, Edo, Oyo, Akwa Ibom etc. in addition to Benue.

The upper chamber also condemned the Benue State Independent Electoral Commission’s blatant disregard for democratic principles in the sham local government elections of Saturday, October 5.

Lawmakers also asked the Benue State Independent Electoral Commission to conduct elections in those place where elections were not held and allow the people to choose the representatives of their choice.

The President of the Senate, Godswill Akpabio, also mooted the idea of a national dialogue with a view to changing the narrative.

He maintained that the sham of LG elections transcends party lines, asserting that the National Assembly is poised to change the situation for the better.

Akpabio also called out the Edo state Governor, Godwin Obaseki, stating that he has no respect for the rule He referred to the Obaseki’s refusal to swear in duly elected members of the state house of assembly for four years despite court orders.